Hotel & Motel Management - October 15, 2007 - (Page 20)

20 Timeshare H&MM October 15, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition VACATION OWNERSHIP THRIVING Industry leaders: Healthy times to continue IN THE details Strong performance to last Competition continues to raise the vacation ownership bar as companies in the industry add more luxury-tier products along with new construction units. Other trends include: Demand is there Consumers expect more Product upgrades essential By Stacey Mieyal Higgins SENIOR EDITOR ON time According to Ernst & Young, LLP, U.S. timeshare sales were $10 billion in 2006, a 16 percent increase over 2005. As of Jan. 1, 2007, there are 1,615 vacation ownership resorts operating in the U.S. Vacation Resorts International (VRI) signed a property management contract for La Costa Beach Club Resort, Pompano Beach, Fla. The WorldMark Coral Baja resort in San Jose del Cabo, Mexico, is owned by Wyndham Vacation Ownership, whose c.e.o. said people will always take vacations, therefore vacation properties will always be necessary. WYNDHAM VACATION OWNERSHIP T he vacation ownership industry is a resilient and thriving business, according to industry executives. Franz Hanning, president and c.e.o., Wyndham Vacation Ownership, said the business has been growing by double digits for the last 15 years. “No matter what is happening with real-estate, gas prices or other economic factors, it has never had an impact on the industry,” he said. “People still take vacations. They may change the length of time or where they go, but vacation ownership offers a compelling value proposition.” Others agree with Hanning’s observations. David N. Matheson, v.p. of corporate communications for Starwood Vacation Ownership, said timeshare’s strength dates back even 20 years. “Despite what is going on in the market with the mortgage mess … our industry remains strong,” he said. “Vacation ownership has been somewhat acyclical when it pectations, according to Edward comes to real-estate trends.” Kinney, v.p. of corporate affairs Along with adding more units, and brand awareness. Wyndham is turning its attention “At the product level, expectato luxury offerings. tions continue to evolve at a rapHanning said a new Presiden- id pace,” he said. “You must add tial Club will create a new enhancements that keep class of owners. [customers] aspiration“Customers told us al or you’ll fall behind. they want a more luxThe stainless steel apurious experience,” he pliances, Wi-Fi, plasma said. LCD TVs—things like In addition to addthat make the product ing more presidential the best it’s ever been. suites at existing propEven competitors recerties, the company is Hanning ognize they have to inplanning to develop WYNDHAM VACATION vest in the product, and high-end private resiconsumers are beneﬁtdence clubs in ski areas, Califor- ing from that, too.” nia wine country and beach areas Starwood is busy adding rein the next 18 months. sorts in Mexico—with three At Marriott Vacation Club, properties under development, the focus has been on upgrading Matheson said. Other markets, products to meet consumer ex- such as Colorado, California and Florida, also are strong. Competition in the marketplace continues to raise the vacation ownership bar, according to the industry executives. “The luxury-tier products are gaining in popularity and competition from destination club products,” Matheson said. “This competition is good for the industry and it forces everyone to understand the consumers’ needs and wants, and respond accordingly.” Hanning said his sales and marketing teams “are doing a great job. It’s difﬁcult to keep pace with the inventory demand. … It’s an exciting time.” He said the company needs to add approximately 1,500 to 1,800 new units a year—primarily with new builds—to support the sales growth. shiggins@questex.com As part of its expansion plans, Disney’s Grand Californian Hotel & Spa will build the ﬁrst Disney Vacation Club villas in Anaheim, Calif. The villas are set to open in late 2009. Festiva Development Group has acquired Equivest Vacation and Travel Club, formerly Peppertree Vacation Club. The deal includes 7,000 resort intervals, 12 management contracts and development rights in nine different locations, as well as other assets. KL International LLC has named two managing directors: Gary Tadych, president of The TAG Group, and Farzin Ferdosi, who has been in the industry since 1981. In addition, Frank Gazzolo was named c.f.o. of the company. Wyndham Vacation Ownership adds ﬁve Kauai, Hawaii-based resorts to its FairShare Plus by Wyndham portfolio. The properties were part of its PAHIO acquisition from July 2006. Disney plans to add vacation ownership units By Christine Blank CONTRIBUTING EDITOR New York–Disney Vacation Club in Orlando is in the process of adding another mixed-use property to its roster of eight vacation ownership resorts. Walt Disney World Resorts’ 1,293-bedroom Animal Kingdom Lodge, in its Animal Kingdom theme park, is undergoing renovations and additions that will result in 449 two-bed- room vacation ownership units by spring 2009. The ﬁrst phase of the project includes the conversion of guestrooms on the ﬁfth and sixth ﬂoors of the existing resort and villas into 109 two-bedroom units called the Jambo House. DVC began selling some units this summer, and the rest of the units will open in phases. DVC has also started construction on a series of connecting buildings adjacent to the resort, called Kidani Village. The 340 two-bedroom vacation ownership units also will open in 2009. The African-themed buildings, which include thatched roofs on hewn-timber buildings that appear to emerge from the land, will offer views of African animals, such as giraffes, in the surrounding savannah. “There is total immersion at this property … with the spir- it of Africa. There is a huge collection of authentic African art, and we also have guided tours, walking tours and wildlife lectures with an animal curator,” said Sonya Deese-Byrnes, general manager of Disney Vacation Club Resorts. DVC now has 115,000 member families in its vacation ownership properties in Florida, California and Hilton Head Island, S.C. hmm@questex.com Orlando-based KrausManning is working with Marriott Vacation Club International as an extension of staff for the development of Frenchman’s Cove, a timeshare vacation villa on St. Thomas, U.S. Virgin Islands. Compiled by Elaine Simon, esimon@questex.com http://HotelMotel.com http://www.HotelMotel.com/digital_edition

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - October 15, 2007

Hotel & Motel Management - October 15, 2007 Contents Concord Sets Goal to Double Portfolio Leaders: Budgetel Brand Off and Running Pension Funds Put More Capital Into Hotels Perspective Letter to the Editor At Your Risk Consultant's Corner Sales Clinic On Finance Guest Column Trends & Stats Industry Leaders Say Healthy Times Will Continue Eco-Concious Hotels Looks for Certification Events Removing Chemicals, Suds from Housekeeping Products Handhelds Help Track Safe Activity People on The Move Awards Transactions Supplier News Ad/Editorial Index Bath Trends Marketplace Classifieds Checking Out

Hotel & Motel Management - October 15, 2007

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